The demand for personal computers (PCs) continued to decline as China’s Lenovo Group on Wednesday announced a 24 percent decline in revenue for the January-March quarter, in line with market estimates.
The largest PC manufacturer in the world reported fourth-quarter revenue of $12.63 billion (approximately Rs. 1,04,497 crore), a 24 percent decrease.
The outcome was measured against the $12.74 billion ($1,05,447 billion) average of eight analyst estimates gathered by Refinitiv.
Revenue decreased by 14 percent for the entire year through March, the first annual loss since 2019.
Electronics sales saw a big increase as a result of the COVID-19 outbreak as businesses and consumers alike upgraded or stocked up on equipment to prepare for a move to remote work.
However, as demand started to decline last year, revenue started to decline. Lenovo recorded the most significant revenue decline in 14 years for the prior quarter, down 24 percent.
According to data from researcher IDC, global shipments of PCs fell by 29 percent to 56.9 million units in January–March, compared to the same time in pre–pandemic 2018 and 2019.
Lenovo has been growing non-PC sectors including smartphones, servers, and information technology (IT) services in order to increase profit margins.
Through March of this year, its non-PC operations expanded by 7% and now account for nearly 40% of overall sales.
In comparison to experts’ estimates of $212.49 million (approximately Rs. 1,758 crore), the total net income attributable to shareholders for the period of January through March decreased by 72% to $114 million (about Rs. 943 crore).
Prior to the announcement of the financial results, the price of Lenovo shares dropped by 3.7 percent in early trading, while the benchmark index was dropped by 0.94 percent.